Don't panic, FM tells investors

Finance Minister Pranab Mukherjee said that the government would take appropriate action if it finds any discrepancy in loan disbursement by financial institutions and ask investor not to panic as markets reacted adversely shortly after the news of housing loan scam broke out.

Finance Minister Pranab Mukherjee said that the government would take appropriate action if it finds any discrepancy in loan disbursement by financial institutions and ask investor not to panic as markets reacted adversely shortly after the news of housing loan scam broke out.

He however said that it was not possible to give any further details on the issue at present.

"There is no need to press the panic button, I am in touch with the RBI governor and LIC on the matter," Mukherjee told reporters on Tuesday on the sidelines of a conference.

Though the government downplayed it by saying that it was a case of individual bribery, Mukherjee has directed banks to look into the matter and make an assessment of their exposure to the real estate sector.

Last week Mukherjee directed public sector lenders and insurers to look into their exposures to various companies mentioned in the CBI application filed in court in connection with housing finance racket busted a few days ago.